NBC News·2025-12-11 22:55Core Insights - The tech sector is experiencing volatility, with fears of an AI bubble as Oracle's recent earnings miss led to a significant drop in its stock price, impacting the broader market [1][4][10] Company Performance - Oracle's shares fell nearly 11% after reporting revenue below Wall Street estimates, resulting in a loss of approximately $70 billion in market value [1][2] - The company announced an increase in its fiscal 2026 spending by $15 billion, bringing total capital expenditures to $50 billion [2][3] Market Impact - Oracle's stock decline affected other AI-related stocks, with Nvidia down nearly 1.5%, Arm Holdings and Intel over 3%, and Alphabet down 2.4% [4] - The S&P 500 and Dow Jones reached record highs, while the Nasdaq was the only major index to close lower due to Oracle's performance [2][10] Financial Metrics - Oracle's credit default swaps (CDS) surged to their highest level since 2009, indicating increased perceived risk in the company's debt following the earnings report [5][6] - The company's backlog of signed contracts is valued at $523 billion, driven by partnerships with major firms like Meta and Nvidia [3] Investment Landscape - The interconnected nature of AI investments among companies like Oracle, Nvidia, Microsoft, and OpenAI raises questions about the sustainability of the current investment boom [10][11] - Nvidia's potential $100 billion investment in OpenAI highlights the scale of financial commitments in the AI sector, although definitive agreements remain unfinalized [12][13]